Transportation

A growing economy relies on an effective and efficient transportation system; however, issues related to pollution, congestion, and safety can dampen that growth. RFF experts are analyzing the costs, benefits, and distributional consequences of transportation policies to help lawmakers design programs that can effectively impact consumer and producer behaviors.

The transportation sector accounts for the majority of oil consumption in the United States and about one-quarter of the nation’s greenhouse gas emissions. Recently, the US Environmental Protection Agency, along with the National Highway Traffic Safety Administration, released new fuel economy regulations for light-duty vehicles designed to cut gasoline consumption and greenhouse gas emissions in half by the 2025 model year.

Volkswagen capitalized on the preferences of consumers who wanted a high-performing, environmentally friendly car. Now, the VW emissions scandal will force some car owners to make a tough choice—of the private or public benefits, which do they value more?

Fuel economy regulations lower the cost of driving and can result in more miles traveled—what is known as the rebound effect. We estimate the magnitude of the rebound effect expected from new fuel economy regulations on medium- and heavy-duty trucks.

How do supermarkets’ grocery-gasoline bundled discount programs affect competition in gasoline markets? The answer depends on the scale of the program, the time horizon, and the characteristics of the gasoline site.

Under the new CAFE standards, US automakers can buy and sell emissions and fuel consumption credits for the first time. This added flexibility could lead to significant cost savings, but there are challenges to establishing a well-functioning market.

A novel approach to calculating the costs of Mexico City’s “Day Without Driving” program estimates that roughly 3 percent of the country’s GDP is spent on the program—and that the costs are disproportionately burdensome for lower-income drivers.